Differences Between Bitcoin and Ethereum
The differences between Bitcoin and Ethereum are widely discussed as they are popular cryptocurrencies. In this guide, we'll take a look at the differences and similarities between Ethereum and Bitcoin. In 2008, the Bitcoin and Blockchain technology invented by Satoshi Nakamoto, who is still anonymous, was the beginning of the cryptocurrency world. With the inspiration of Bitcoin to developers, thousands of cryptocurrencies that we call "altcoins", or alternative coins appeared, produce new values with Blockchain technology. Although there are so many cryptocurrencies after Bitcoin, Bitcoin has maintained its popularity and functionality, and today it is the highest volume cryptocurrency, which is the main focus of cryptocurrency investors for cryptocurrencies. Ethereum, developed by Vitalik Buterin in 2015, is the second cryptocurrency that cryptocurrency investors are most interested in after Bitcoin. It draws attention with its new smart contract technology. Let's examine the differences between Bitcoin and Ethereum that shape the financial world with their technologies.
Concept:
Bitcoin allows the Bitcoin transfer between parties to take place securely on the blockchain. While Ethereum enables the transfer between parties, it also enables transfer between the two parties when the pre-determined conditions are met, thanks to the smart contract technology it has developed.
Mining:
Transfers made in Bitcoin are approved by miners with 'proof of work', ie proof of transaction. The same method is used in Ethereum. Ethereum 2.0, which has been developed for a long time, will switch to the "proof of stake" system. In this way, a party will be able to confirm the transaction as much as the amount of cryptocurrency it holds.
Awards:
Bitcoin rewards miners with 6.25 Bitcoin at the end of each block. This award is halved every 210,000 blocks, approximately every 4 years. Thus, the supply of Bitcoin is limited. In Ethereum, miners or those who approve the transaction with Ethereum 2.0 receive 3 Ether for each block. As with Bitcoin, this reward is not halved after the block.
Transfer Fees:
The fee paid for transfers is left to the sender's decision for Bitcoin. The party who wants a transaction to be completed much faster can easily attract the attention of the miners who will approve the transaction by increasing the transfer fee. In Ethereum, transfers are made with fixed fees, also known as 'gas' fees.
Block Creation:
It takes 10 minutes to add a block to the blockchain in Bitcoin. For Ethereum, the block creation time is between 10-15 seconds.
Supply Quantities:
Currently, approximately 18.5 Million Bitcoins are in circulation. The total amount of Bitcoin that can be created is limited to 21 Million. Ethereum is around 111 Million units on the market. There is no set supply limit. If you want to start your cryptocurrency investments by buying Bitcoin, Ethereum, and other altcoins, you can create a free account through Icrypex. You can deposit money to your Icrypex account at any time and buy Bitcoin and Ethereum thanks to Icrypex's easy interface.
